ECB Preview: Draghi Building Support for QE3

It will be difficult for ECB President Draghi to reach a consensus on extending bond purchases at this meeting. Any decision not to make a move is, however, likely to come with even stronger rhetoric over its determination to lift inflation with Draghi also likely to a promise a policy re-evaluation in the fourth quarter. An implied suggestion of further action would lessen the risk of a squeeze on short Euro positions and lessen selling in equities.